New York SB-S4019A - Leases & Deceased Lessors - New Protections

ILL NUMBER: S4019A

SPONSOR: THOMAS
 
TITLE OF BILL:

An act to amend the general business law and the personal property law,
in relation to early termination of motor vehicle lease contracts

 
PURPOSE:

This bill would prohibit companies from charging early termination fees
on motor vehicle lease contracts if a customer has deceased before the
end of such contract

 
SUMMARY OF PROVISIONS:

Section 1 amends subdivision 1 of section 399-zzzz of the general busi-
ness law to prohibit motor vehicle lessors from imposing an early termi-
nation fee if a customer has deceased before the end of such contract.

Section 2 amends subdivision 5 of section 337 of the personal property

law to add a prohibition on early termination fees to all retail lease
agreements of motor vehicles.

Section 3 adds a new subdivision 4 to section 341 of the personal prop-
erty law to add a prohibition on early termination fees to the
restrictions on early termination liability.

Section 4 states the effective date.

 
JUSTIFICATION:

Many companies use early termination fees to ensure a customer continues
use of a service through the contract length. However, there have been
instances where these companies have charged early termination fees to
accounts cancelled prior to the expiration of the contract due to the
customer's death. Chapter 331 of the laws of 2016 prohibited telephone,
cellular telephone, television, internet, energy, and water service
providers from charging early termination fees if the contract was
broken due to the death of the customer.  However, motor vehicle leases
were not included. This bill simply expands protections from early
termination fees to motor vehicle leases.

 
LEGISLATIVE HISTORY:

2017-18: A9727 referred to Consumer Affairs

 
FISCAL IMPLICATIONS:

None to state.

 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law and shall apply to all leases entered into, renewed, modi-
fied or amended on or after such effective date.

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4019--A
    Cal. No. 689

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                            February 25, 2019
                               ___________

Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Consumer  Protection  --
  reported  favorably  from  said committee, ordered to first and second
  report, ordered to a third reading, passed by Senate and delivered  to
  the  Assembly, recalled, vote reconsidered, restored to third reading,
  amended and ordered reprinted, retaining its place  in  the  order  of
  third reading

AN  ACT to amend the general business law and the personal property law,
  in relation to early termination of motor vehicle lease contracts

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subdivision 1 of section 399-zzzz of the general business
law, as added by chapter 331 of the laws of 2016, is amended to read  as
follows:
  1. Subject to federal law and regulation[,]:
  A. no provider of telephone, cellular telephone, television, internet,
energy,  or  water  services shall impose a fee for termination or early
cancellation of a  service  contract  in  the  event  the  customer  has
deceased before the end of such contract; AND
  B.  A RETAIL LESSEE, AS DEFINED IN SECTION THREE HUNDRED THIRTY-ONE OF
THE PERSONAL PROPERTY LAW, SHALL NOT BE LIABLE FOR CHARGES FOR THE EARLY
TERMINATION OF A RETAIL LEASE AGREEMENT OF A MOTOR VEHICLE IF HE OR  SHE
HAS DECEASED BEFORE THE END OF SUCH LEASE.
  §  2.  Paragraphs  (i), (j) and (k) of subdivision 5 of section 337 of
the personal property law are relettered paragraphs (j), (k) and (l) and
a new paragraph (i) is added to read as follows:
  (I) A STATEMENT IN AT LEAST EIGHT-POINT BOLD  TYPE  STATING  THAT  THE
LESSEE SHALL NOT BE LIABLE FOR AN EARLY TERMINATION FEE IF HE OR SHE HAS
DECEASED BEFORE THE END OF THE LEASE;
  §  3.  Section 341 of the personal property law is amended by adding a
new subdivision 4 to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD01695-03-9

S. 4019--A                          2

  4. THERE SHALL BE NO EARLY TERMINATION LIABILITY TO THE LESSEE  IF  HE
OR SHE HAS DECEASED BEFORE THE END OF SUCH LEASE.
  §  4.  This  act shall take effect on the ninetieth day after it shall
have become a law and shall apply to all leases entered  into,  renewed,
modified or amended on or after such effective date.